Tools

Severance Pay Calculator

Calculate retirement / severance pay according to the laws of major countries.

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USD

How to Calculate

United States – Severance Pay (Common Practice) No federal mandate. Common formula: Weekly Pay × Weeks/Year × Completed Years • 1 week/year: typical employees • 2 weeks/year: managers/executives • WARN Act: 60-day notice or equivalent pay for mass layoffs (100+ employees)

FAQ

Is severance legally required in the U.S.?
No. Federal law (FLSA) does not require severance. It is mandatory only if specified in an employment contract or company policy.
What is the WARN Act?
Employers with 100+ employees must give 60-day notice of mass layoffs. Failure may result in up to 60 days of back pay.
Is severance taxed?
Yes — as ordinary income. Federal/state income tax and FICA (Social Security, Medicare) apply.

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